There are new strict guidelines in the market now, in subprime and ALTA-A lending. I believe that it will help homeowners keep their homes instead of getting into loans that will force them to overextend and sometimes lose their homes. Foreclosure rates are up, buyers with excellent credit but no money down are seeing higher interest rates, its a mixed reaction. Buyers who really can afford higher priced homes but need stated income loans (self employed, business owners, etc.), have plenty of assets but don't want to spend the money as a down payment (whether it be a wedding coming up, a new business venture, etc.), are also being affected by these new lending guidelines.

In a sense I feel it will be good for the market and for homebuyers to help them to stay within their real price ranges, but we also have such a glut of homes on the market, that many good and willing buyers will be forced out of the market.

Is there a happy medium to help remedy this crisis, without having a huge impact on the real estate market?